ERIXF (Telefonaktiebolaget L M Ericsson) Moat Score: 7/10 (As of Jun. 27, 2026)


ERIXF Telefonaktiebolaget L M Ericsson ERIXF
59 GF Score
Price $10.91
GF Value $7.19
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Telefonaktiebolaget L M Ericsson Moat Score?

Telefonaktiebolaget L M Ericsson ERIXF -4.47% 59 Moat Score is 7 as of Jun. 27, 2026. GuruFocus rates ERIXF with a GF Score™ of 59/100 and a GF Value™ of $7.19 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,469 Hardware companies, Telefonaktiebolaget L M Ericsson ranks better than 99.76% on this metric.

Telefonaktiebolaget L M Ericsson has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Telefonaktiebolaget L M Ericsson has Wide Moat: Ericsson has a strong position in the telecommunications industry with significant intellectual property, economies of scale, and a robust distribution network. Its brand strength and consistent innovation in 5G technology provide durable competitive advantages, justifying a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Telefonaktiebolaget L M Ericsson might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Telefonaktiebolaget L M Ericsson  (OTCPK:ERIXF) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Telefonaktiebolaget L M Ericsson Moat Score Related Terms

ERIXF vs CSCO, CIEN, MSI: Moat Score Comparison

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Telefonaktiebolaget L M Ericsson Moat Score vs Hardware Industry

For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Moat Score distribution charts can be found below:

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Moat Score falls into.


ERIXF
59GF Score
Telefonaktiebolaget L M Ericsson ERIXF
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
Telefonaktiebolaget L M Ericsson (ERIXF) has a Moat Score of 7 as of Jun. 27, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #6 out of 2469 companies in the Hardware industry, placing it in the top 0.2%.
Is Telefonaktiebolaget L M Ericsson's Moat Score too high?
Telefonaktiebolaget L M Ericsson's current Moat Score is 7. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #6 out of 2469 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's Moat Score compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #6 out of 2469 companies for Moat Score. This places Telefonaktiebolaget L M Ericsson in the top 0% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Hardware company?
A good Moat Score depends on the Hardware industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Telefonaktiebolaget L M Ericsson's current Moat Score is 7. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonaktiebolaget L M Ericsson stock overvalued right now?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson (ERIXF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.19, compared to a current price of $10.91 — trading 51.7% above its estimated fair value. The current Moat Score is 7. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current Moat Score is 7 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Telefonaktiebolaget L M Ericsson (ERIXF) Overvalued in 2026?

Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson stock appears to be overvalued. The current stock price of $10.91 is trading 51.7% above its estimated GF Value™ of $7.19. GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.

Key valuation signals for ERIXF:

  • Moat Score: 7
  • GF Value™: $7.19 vs. price of $10.91 (51.7% above fair value)
  • GF Score™: 59/100 with 3 warning signs

No single metric tells the full story. See the ERIXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Telefonaktiebolaget L M Ericsson Business Description

Address Torshamnsgatan 21, Kista, Stockholm, SWE, SE-164 83
Ericsson is a networking equipment and software provider, primarily selling mobile networking equipment and services to wireless service providers. Ericsson operates in three segments: networks, cloud software and services, and enterprise. While large wireless carriers are its largest customers, Ericsson has expanded its offerings for large enterprises. These products and services include private 5G networking, contact centers as a service, and application performance interfaces. Ericsson aims to combine its 5G network expertise with cloud-native, as-a-service platforms offering a more comprehensive hardware and software package. Ericsson also monetizes its research and development investments by licensing patents to handset manufacturers.
59GF Score

Get the complete analysis for ERIXF

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$10.91
Price
$7.19
GF Value